According to sources familiar with the matter, preliminary negotiations are underway regarding a potential deal between Meta and Anthropic concerning the lease of part of Meta's computing infrastructure, which is valued in billions of dollars.
Information on the potential deal
The New York Times initially reported on this possible agreement, citing three informed individuals who estimated the deal's value at up to ten billion dollars over two years. However, a CNN source familiar with the situation noted that any specific figures published are merely speculation.
Both Meta and Anthropic declined to comment on these negotiations.
Meta's investments and needs
The possibility of becoming a provider of computing power could open up a significant new revenue stream for Meta, as the company is actively investing in developing data center infrastructure to support its artificial intelligence goals. According to the latest earnings report, Meta plans to spend between $125 and $145 billion on capital expenditures this year, primarily directed towards expanding this infrastructure. This amount could double the company's spending compared to the previous year.
Earlier, in April, Meta announced a 10% workforce reduction, affecting about 8,000 employees, partly to offset costs associated with these investments.
Comments from Meta leadership
Meta CEO Mark Zuckerberg has previously spoken about the possibility of leasing out part of this infrastructure if the company's own computing needs cannot keep pace with construction rates. At Meta's annual shareholder meeting in May, Zuckerberg stated: 'We get inquiries almost every week from various external companies asking if we have computing power they could purchase from us at a premium price compared to the purchase price. We haven't done that yet because we believe we have uses for this computing. But obviously, if we reach a point where we feel we have built too much, then it is one of the options we have.'
AI competition and market
Demand for computing power remains high as both large and small companies rush to implement AI, and leading AI labs work on improving their models. Anthropic has already secured multi-billion dollar agreements for computing power licensing with companies such as Google, SpaceX, Microsoft, and Amazon.
Meanwhile, investors are waiting to see how Meta's investments will affect net profit, especially given the need to keep up with AI offerings from companies like Anthropic and OpenAI. Meta's stock (META) has fallen by more than 8 percent compared to this time last year. Furthermore, last month, Meta released an updated version of its Muse Spark AI model, stating that it can compete with the coding capabilities of models from OpenAI, Anthropic, and others. For the first time, Meta announced plans to offer this service in a paid version, which is another sign that the company is looking for higher returns on its AI developments.